[Federal Register Volume 82, Number 104 (Thursday, June 1, 2017)]
[Proposed Rules]
[Pages 25221-25223]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-11321]
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FEDERAL MARITIME COMMISSION
46 CFR Parts 515, 520, 525, 530, 531, 532, 535, 540 and 565
[Docket No. 17-04]
RIN 3072-AC69
Regulatory Reform Initiative
AGENCY: Federal Maritime Commission.
ACTION: Notice of inquiry.
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SUMMARY: The Federal Maritime Commission (FMC or Commission) is issuing
this Inquiry to solicit information and comments in an effort to
identify existing FMC regulations that are outdated, unnecessary,
ineffective, eliminate jobs or inhibit job creation, impose costs that
exceed benefits, or otherwise interfere with regulatory reform
initiatives and policies. This action is taken in conjunction with
Executive Order 13777, ``Enforcing the Regulatory Reform Agenda.''
DATES: Comments are due July 5, 2017.
ADDRESSES: You may submit comments by either of the following methods:
Email: [email protected]. Include in the subject line:
``Docket No. 17-04, Regulatory Reform Initiative.'' Comments should be
attached to the email as a Microsoft Word or text-searchable PDF
document. Only non-confidential comments and public versions of
confidential comments should be submitted by email. Comments containing
confidential information should not be submitted by email.
Mail: Rachel E. Dickon, Assistant Secretary, Federal
Maritime Commission, 800 North Capitol Street NW., Ste. 1046,
Washington, DC 20573-0001.
Docket: For access to the docket to read background documents and
comments received, go to the Commission's Electronic Reading Room at:
http://www.fmc.gov/17-04.
Confidential Information: If your comments contain confidential
information, you must submit the following:
A transmittal letter requesting confidential treatment
that identifies the specific information in the comments for which
protection is sought and demonstrates that the information is a trade
secret or other confidential research, development, or commercial
information.
A confidential copy of your comments, consisting of the
complete filing with a cover page marked ``Confidential-Restricted,''
and the confidential material clearly marked on each page. You should
submit the confidential copy to the Commission by mail.
A public version of your comments with the confidential
information excluded. The public version must state ``Public Version--
confidential materials excluded'' on the cover page and on each
affected page, and must clearly indicate any information withheld. You
may submit the public version to the Commission by email or mail.
The Commission will provide confidential treatment for the identified
confidential information to the extent allowed by law.
FOR FURTHER INFORMATION CONTACT: For questions regarding submitting
comments or the treatment of confidential information, contact Rachel
E. Dickon, Assistant Secretary, Federal Maritime Commission, 800 North
Capitol Street NW., Ste. 1046, Washington, DC 20573-0001. Phone: (202)
523-5725. Email: [email protected]. For all other questions, contact
Karen V. Gregory, Managing Director,
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Federal Maritime Commission, 800 North Capitol Street NW., Room 1018,
Washington, DC 20573-0001. Phone: (202) 523-5800. Email: [email protected].
SUPPLEMENTARY INFORMATION: On February 24, 2017, President Trump issued
Executive Order 13777, Enforcing the Regulatory Reform Agenda (E.O. or
E.O. 13777). 82 FR 12285 (March 1, 2017). This E.O. follows closely
upon the President's previous E.O. concerning government regulations,
E.O. 13771, Reducing Regulations and Controlling Regulatory Costs. 82
FR 9339 (February 3, 2017). Among other issues, E.O. 13777 directs the
head of most Federal agencies to designate an agency official as its
Regulatory Reform Officer (RRO), who will ``oversee the implementation
of regulatory reform initiatives and policies to ensure that agencies
effectively carry out regulatory reforms.'' Independent regulatory
agencies such as the Commission are not subject to E.O. 13777, however
they are encouraged to comply. OMB Memorandum M-17-23, Guidance on
Regulatory Reform Accountability under Executive Order 13777, titled
``Enforcing the Regulatory Reform Agenda,'' issued April 28, 2017. On
March 13, 2017, Acting Chairman Michael A. Khouri designated the
agency's Managing Director, Karen V. Gregory, to serve as Regulatory
Reform Officer.
E.O. 13777 directs Federal agencies subject to the E.O. to
establish a Regulatory Reform Task Force (Task Force), consisting of
the Agency RRO and other designated agency officials, which will
evaluate existing regulations and make recommendations to the agency
head concerning their repeal, replacement, or modification. The FMC's
Task Force is charged with evaluating existing regulations to ``make
recommendations to the agency head regarding their repeal, replacement,
or modification.'' Further, the E.O. directs each Task Force to attempt
to identify regulations that:
Eliminate jobs, or inhibit job creation;
are outdated, unnecessary, or ineffective;
impose costs that exceed benefits; or
create a serious inconsistency or otherwise interfere with
regulatory reform initiatives and policies.
Within 90 days of the E.O., the Task Force is directed to provide a
report to the agency head detailing the agency's progress towards the
goals of implementing regulatory reform and identifying regulations for
repeal, replacement, or modification.
The designation of a Regulatory Reform Officer and establishment of
a Regulatory Reform Task Force is consistent with the intent of E.O.
13777 and E.O. 13771, the deregulatory spirit of the Shipping Act as
amended by the Ocean Shipping Reform Act of 1998, and agency regulatory
review initiatives ongoing since November 4, 2011. Building on
Executive Orders of both the prior and current Administrations, the
Commission is in the process of identifying those regulations that are
the most ineffective, would be the easiest to repeal, and would lend
themselves to a definitive timeline within the agency to move those
items to a vote before the Commission.
Commission Action
The Commission invites comment and information from all members of
the interested public, including ocean common carriers, marine terminal
operators, ocean transportation intermediaries (OTIs), tariff
publishers, surety companies, exporters, importers, and beneficial
cargo owners, on ways to make the Commission's regulations less
burdensome and more effective in achieving the objectives of the
Shipping Act. The Commission specifically requests comments and current
information or data on any (or all) of the following areas of FMC
programs and regulations:
46 CFR Part 515 Licensing, Financial Responsibility Requirements and
General Duties for Ocean Transportation Intermediaries
Under this program, the Commission reviews all applications for OTI
Non-Vessel Operating Common Carrier (NVOCC) and OTI Ocean Freight
Forwarder licenses and, after investigation, may issue a license to
qualified applicants. After approval, OTI licenses are issued to
applicants upon receipt of acceptable proof of financial
responsibility, usually in the form of a surety bond. When appropriate,
the Office recommends denial.
The Commission also manages the Regulated Persons Index as to
parties licensed or registered with the Commission, receives and
processes all OTI bonds and bond riders, registers foreign-based
unlicensed NVOCCs, and provides for renewal of OTI licenses and
registrations every three years.
Interested parties may wish to review the record and Final Rule in
FMC Docket No. 13-05, Amendments to Regulations Governing Ocean
Transportation Intermediary Licensing and Financial Responsibility
Requirements, and General Duties, (Final Rule published at 80 FR 68721
(Nov. 5, 2015), as corrected at 81 FR 4592 (Jan. 27, 2016); rulemaking
record available at www.fmc.gov/13-05/).
46 CFR Part 520 Carrier Automated Tariffs
Under this program, the Commission reviews carrier-published tariff
systems under the accessibility and accuracy standards of the Shipping
Act of 1984, reviews published tariff material for compliance with the
Shipping Act's requirements, and responds to inquiries or issues that
arise concerning tariff rates, rules and practices. The Commission also
acts upon applications for special permission to deviate from tariff
publishing rules and regulations and recommends Commission action on
specific problems and concerns regarding the publication of tariffs.
The Commission publishes the location of all VOCC and NVOCC tariffs
online.
46 CFR Part 525 Marine Terminal Operator Schedules
The Commission's program under 46 CFR part 525 provides that a
Marine Terminal Operator (MTO) may make available a schedule of its
rates, regulations, and practices to the public at its discretion. A
complete and current set of schedules of rates, regulations, and
practices must be maintained for five years, and made available to the
Commission upon request.
MTOs who currently publish a schedule are identified through Form
FMC-1 and the RPI. The Commission separately publishes the location of
those terminal schedules available to the public.
46 CFR Part 530 Service Contracts
The Shipping Act allows ocean common carriers, either individually
or through agreements, to negotiate and execute service contracts with
one or more shippers or shippers' associations. Under service
contracts, shippers make a commitment to provide a certain volume or
portion of cargo over a fixed period of time and carriers commit to a
specified rate and a defined service level. These contracts are filed
confidentially with the Commission, and are maintained in the
Commission's SERVCON system. A concise statement of certain contract
essential terms, i.e., commodity or commodities involved, minimum
volume or portion, duration, and origin and destination port ranges, is
required to be published in the carrier's tariffs.
The Commission monitors service contract filings for acts
prohibited by the Shipping Act of 1984. Original
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signed service contracts, amendments, and associated records must be
maintained for five years from the termination of the contract and be
made available to the Commission for audit upon request. An FMC-
developed Web Service allows VOCCs to incorporate the filing of service
contracts into their own contract management systems.
Interested parties may wish to review the record and Final Rule in
FMC Docket No. 16-05, Amendments to Regulations Governing Service
Contracts and NVOCC Service Arrangements (Final Rule published at 82 FR
16288 (Apr. 4, 2017); rulemaking record available at http://www.fmc.gov/16-05/).
46 CFR Part 531 NVOCC Service Arrangements
NVOCCs that are in compliance with the Commission's licensing and
financial responsibility requirements (46 CFR part 515) may enter into
an NVOCC Service Arrangement (NSA) with one or more NSA Shippers. An
NSA is the NVOCC functional equivalent to a service contract. NSAs are
filed confidentially with the Commission, and maintained in the FMC's
SERVCON system.
Interested parties may wish to review the record and Final Rule in
FMC Docket No. 16-05, Amendments to Regulations Governing Service
Contracts and NVOCC Service Arrangements (Final Rule published at 82 FR
16288 (Apr. 4, 2017); rulemaking record available at http://www.fmc.gov/16-05/).
46 CFR Part 532 NVOCC Negotiated Rate Arrangements
NVOCCs may enter into an NVOCC Negotiated Rate Arrangement (NRA),
which are exempt from certain tariff rate publication requirements.
NRAs are written arrangements between a shipper and a licensed or
registered NVOCC to provide specific transportation service for a
stated cargo quantity, from origin to destination, on and after a
stated date or within a defined time frame. If an NVOCC uses NRAs, it
need not publish that rate in the tariff it makes available to the
public. Unlike service contracts and NSAs, NRAs are not filed with the
Commission, but are maintained in private electronic systems.
46 CFR Part 535 Ocean Common Carrier and Marine Terminal Operator
Agreements Subject to the Shipping Act of 1984
The Commission reviews agreements involving ocean common carriers
and marine terminal operators under the standards of the Shipping Act
of 1984. More specifically, the Commission has responsibility for
competition review and market analysis, focusing on activity that is
substantially anticompetitive under the standards of section 6(g) of
the Shipping Act of 1984. In this regard, the Commission administers a
variety of monitoring programs and other research efforts, designed to
track relevant competitive and economic activity in major U.S. trade
lanes and apprise the Commission of emerging commercial trends and
carrier pricing and service activities.
The Commission's agreement program activities consist of processing
carrier and marine terminal operator agreement filings; making
appropriate recommendations on the disposition of filed agreements,
administering Monitoring Report filing requirements, and reviewing
agreement meeting minutes and reports; and maintaining an agreement
database that contains pertinent information on each ocean common
carrier and marine terminal operator agreement filed with the
Commission.
A rulemaking proceeding is currently pending as to agreement filing
requirements and processing. See FMC Docket No. 16-04, Ocean Common
Carrier and Marine Terminal Operator Agreements Subject to the Shipping
Act of 1984, (Notice of Proposed Rulemaking published at 81 FR 53986
(Aug. 15, 2016); rulemaking record available at www.fmc.gov/16-04/).
Parties are encouraged to review that rulemaking proceeding before
filing comments to this Notice of Inquiry.
46 CFR Part 540 Passenger Vessel Financial Responsibility
Under this program, the Commission issues certificates to operators
of passenger vessels (PVOs) with berths for 50 or more passengers and
that embark passengers from U.S. ports. The Certificate (Performance)
evidences that the PVO has on file with the Commission acceptable
coverage to satisfy any liability incurred for nonperformance of
transportation, such as when a PVO declares bankruptcy and fails to
complete the cruises booked. The coverage is used to reimburse
passengers when the PVO fails to perform cruises as contracted and has
taken no further actions to refund passengers. The Certificate
(Casualty) evidences that the PVO has acceptable coverage on file with
the Commission to satisfy any liability incurred for death or injury
during a cruise.
For additional information, please see the record and Final Rule in
FMC Docket No. 11-16, Passenger Vessel Operator Financial
Responsibility Requirements for Nonperformance of Transportation,
(Final Rule published at 78 FR 13268 (Feb. 27, 2013); rulemaking record
available at www.fmc.gov/11-16/).
46 CFR Part 565 Controlled Carriers
The Commission maintains a program of reviewing the reasonableness
of the rates of carriers operating in the U.S.-foreign trades that are
owned or controlled by foreign governments. Special regulatory
oversight is exercised by the Commission to ensure that controlled
carriers, whose marketplace decision-making can be influenced by
foreign governmental priorities or by their access to non-market
sources of capital, do not engage in unreasonable below-market pricing
practices which could disrupt trade or harm privately-owned shipping
companies.
The Commission periodically publishes an updated list of controlled
carriers. [Please see http://www.fmc.gov/about/controlled_carrier_list.aspx]
With respect to any Part of the Commission's regulations set forth
above, any individual regulation thereunder, or any section or
subsection of such regulations, interested parties are asked to submit
written comments that: (1) Identify the particular FMC regulation or
program believed burdensome or ineffective; (2) provide details as to
how the FMC program imposes unnecessary costs or burdens upon your
business; and (3) indicate the manner by which the program or
particular requirement should best be repealed, replaced, or modified.
The FMC requests that comments be as specific as possible and include
any supporting data or other helpful information in order to assist the
Commission with its review.
By the Commission.
Rachel E. Dickon,
Assistant Secretary.
[FR Doc. 2017-11321 Filed 5-31-17; 8:45 am]
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